Glaxosmithkline shares jump as it drops Pfizer bid

Emma Walmsley was faced with her biggest strategic decision since she joined Glaxo as chief executive almost a year agoToby Melville / Reuters

Britain’s biggest pharmaceuticals company has pulled out of the running to buy the multibillion-dollar consumer healthcare business of its US rival Pfizer, in a move seemingly welcomed by shareholders.

In a short statement yesterday, Emma Walmsley, chief executive of Glaxosmithkline, said that the FTSE 100 company had withdrawn. “While we continue to review opportunities that may accelerate our strategy, they must meet our criteria for returns and not compromise our priorities for capital allocation,” she said.

Investors appeared to welcome the decision and shares in Glaxo closed up 41¾p to £13.15½.

Pfizer’s consumer healthcare business, which includes over-the-counter branded products, such as Advil painkiller, had been valued at between $15 billion and $20 billion.

Glaxo is a diversified business with a consumer healthcare arm including…

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